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The Canada We Want in 2020: Squaring the Carbon Circle

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The CanadaWe Want in 2020Squaring the Carbon Circle

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The Canada We Want in 2020 SQUARING THECARBON CIRCLE2 The Canada We Want in 2020: Squaring the Carbon Circle

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About Canada 2020 • Canada 2020 is a non-­‐par<san, progressive centre working to create an environment of social and economic prosperity for Canada and all Canadians • Our primary focus is on the role of the federal government 3 The Canada We Want in 2020: Squaring the Carbon Circle

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The Canada We Want in 2020 • Launches a debate about the role of the federal government in Canada • Intended to engage a wide range of interested par<es • Oriented towards policy inﬂuence 4 The Canada We Want in 2020: Squaring the Carbon Circle

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What are we doing? • Five inter-­‐related challenges – Increasing innova<on and produc<vity – Rising to meet the Asia challenge – Squaring the carbon circle – Reducing income dispari<es and polariza<on – Securing our health system for the future • Three stages to the project – Ini<al publica<on (15 authors): November 2011 – Panels and discussion: January – May 2012 – Synthesis document: fall 2012 5 The Canada We Want in 2020: Squaring the Carbon Circle

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The Carbon Problem • Canadians are already amongst the highest per capita emiVers in the world • Problem is intensifying with ever increasing oil sands produc<on • We have no coherent or ar<culated plan to address rising emissions (for the good of the planet) and counter our new-­‐found pariah status (for the good of Canadian commerce) 6 The Canada We Want in 2020: Squaring the Carbon Circle

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The current situa<on • Federally we have neither a carbon nor an energy strategy – We withdrew from the Kyoto process but have no alterna<ve plan – Uncertainty for business and individuals • We have hitched ourselves to the US, but – Our industrial and carbon structure is very diﬀerent from theirs – Poli<cally, they have no ability to progress • Provinces are doing far more than the federal government 7 The Canada We Want in 2020: Squaring the Carbon Circle

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Provincial carbon strategies • BC put in place North America’s ﬁrst true carbon tax in 2008 – Now at $25/tonne – Revenues used to cut other taxes – No discernible impact on the economy – Emissions down by 3% • Alberta has a $15/tonne tax ader caps have been exceeded – Money goes to a fund that pursues “transforma<ve technology solu<ons” • Quebec introduced a small per litre levy on fuel in 2007 – Used to fund Provincial Climate Ac<on Plan 8 The Canada We Want in 2020: Squaring the Carbon Circle

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Key ques<ons • Why have successive Canadian governments failed to make any progress in this area? – How can change be catalyzed? • Which instruments and incen<ves should be part of our future plan? – Eﬀec<veness in securing reduc<ons in emissions – Economic costs – Scope for poli<cal acceptance 9 The Canada We Want in 2020: Squaring the Carbon Circle

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Key ques<ons (cont’d) • What <meframe should we be focusing on? – We will not meet Copenhagen 2020 targets, but should we en<rely give up on them? • What will be the economic impact if we: – Act? – Fail to act? • How can we learn from other countries and build on the eﬀorts of the provinces to crad a meaningful carbon strategy “from below”? 10 The Canada We Want in 2020: Squaring the Carbon Circle

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Authors: Lorraine Mitchelmore • Recognizes the challenge of sa<sfying surging energy demand with environmental impera<ves – Climate change is a real threat • Believes that 2020 targets are so out of reach that we should refocus on the longer term • Calls for innova<ve federal policies and an integrated approach 12 The Canada We Want in 2020: Squaring the Carbon Circle

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Lorraine Mitchelmore Proposes • Development of a climate policy framework to be integrated with a na<onal energy strategy – Recognizing Canada’s role as a global energy supplier • Strategy to draw on a full suite of op<ons with measures tailored to sectors – Smart regula<on – Green energy – Incen<ves for technology development and deployment (where carbon price alone does not s<mulate) – Demand management – Market mechanisms (ul<mately cap-­‐and-­‐trade, though other op<ons may be important ini<ally) 13 The Canada We Want in 2020: Squaring the Carbon Circle

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Authors: Ian Mallory • Addressing the carbon problem is both “the right thing” and the “smart thing” • Need to do this in the least damaging way economically and with minimum regula<on • Look for other public policy jus<ﬁca<ons for measures that must be taken – Makes the case for adop<ng them much stronger 14 The Canada We Want in 2020: Squaring the Carbon Circle

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What you can do • Our goal in this project is to increase debate • We ac<vely encourage feedback on our work – Submit comments or opinion pieces through our website www.canada2020.ca – Contact us directly info@canada2020.ca • Use our materials to host your own events and discussions Thank you for your interest 18 The Canada We Want in 2020: Squaring the Carbon Circle